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Newsletter, Oman

Oman’s Al Mazunah Free Zone is Attracting New Investments

January 17, 2019

New doors are opening for more and more investments for the Al Mazunah Free Zone in Oman, which comes under the purview of the Public Establishment for Industrial Estates – Madayn, as various operating projects reached a number of 197 by the end of November 2018, stated Said bin Abdullah Al Balushi, who is the supervisor of business processes in this free zone.

Al Balushi said that Al Mazunah Free Zone has been fortunate to get 46 fresh investment applications with professionals wanting to do company formation in Al Mazunah Free Zone, which are now under the process of review. This free zone has been very instrumental in the establishment of many Small and also Medium Enterprises for the residents in the wilayat of Al Mazyunah. Approximately 14 SMEs were set up in the areas of import and export, shipping and unloading, hospitality, construction, and also in public services. What’s more? The free zone also provided 60 new job opportunities especially for the national cadres in the operating body of this free zone, some investing companies and the developer named Golden Hala Company.

Al Balushi also shared that Madayn is working on various projects as of now, which include developing the free zone in phase one (second package), and in phase two, the aim would be transmitting electricity to the various leased companies such as cables and transformers, and the broadband project.

According to the electronic system taken up by Al Mazunah Free Zone for managing the transfer of exported and imported products, the volume of imported products into the free zone has reached 155,666 tonnes by November 2018. In addition, the total number of imported vehicles, equipment, and machinery added to about 7,739 during this period.

Al Balushi also said that Madayn keeps making continuous efforts for promoting the Al Mazunah Free Zone among various investors by organizing events that focus on the new investment opportunities available in the free zone and how its strategic location contributes to the local and global trade and investment movement.

These efforts have been planned as per Madayn’s vision to further improve Oman’s status as a top regional hub of manufacturing, ICT, entrepreneurship excellence, innovation and its goal to bring in more industrial investments and keep on giving continued support by making locally and internationally competitive strategies, providing stable infrastructure and value-adding services, and simple governmental processes. These efforts also are in line with the Madayn’s key objectives such as luring fresh foreign investments into the Sultanate and localizing the national capital, while continuing to encourage the private sector to attain sustainable financial and social development, accomplishing environmental sustainability, and also contributing to adding new job opportunities for the national cadres.

Al Mazunah Free Zone was set up under Royal Decree no. 103/2005 to function under the administration of the Public Establishment for Industrial Estates. Its strategic location, which is on the border of the Sultanate and Yemen makes it the perfect Gulf gateway for transit trade especially to Yemen and Eastern parts of Africa. The free zone has a goal to bring in more domestic and international investments for enhancing the trade exchange, get more advanced technologies, and open for new job opportunities. Various incentives are given to investors, which include customs’ exemptions, full or 100 percent foreign ownership, no capital requirements at all, and the Omanisation rate at 10 percent.

So if you are planning of company formation in Oman in near future, get in touch with us at IMC and we will be happy to assist you.

Newsletter, U.A.E

DIFC Company Regulations Highlights

January 17, 2019

Do you know that the DIFC was the first-ever financial Free Zone in the UAE? It is one of two free zones in the country and is also internationally-known for its world-class facilities and services. The initial set up was done in 2004, and today, it has expanded and developed into one of the most recognizable and successful free zones in the kingdom.

It provides all the benefits of a free zone like 100 percent foreign ownership along with no income or profit tax at all. In addition, DIFC especially caters to all the financial companies and is governed by the Dubai Financial Service Authority (DFSA).

It does not actually rely on the rules and legislation found on the UAE or Dubai mainland, because the DFSA makes provisions that are specific to the particular free zone.

The New Version of the DIFC Companies Law

The new law was announced and enacted by the DIFC President, who also happens to be the Vice President of the UAE, His Highness Sheikh Mohammed bin Rashid Al Maktoum.

The amendments include:

There are two new company forms that can be established in the DIFC;
New duties can be added, or changes can be made to the current responsibilities of the directors of companies;
New ultimate beneficial ownership registration information has been added, which all the companies should provide to the DIFC authorities.

Now, the new company types introduced would actually replace LLCs and share limited companies and are PLC’s, which are typically public companies; LTD’s which are basically private companies; and other recognized company forms like branch companies.

The director duties and roles were not so clear earlier, but now, an expansion of the same has been provided. There are some new responsibilities, which involve the promotion of a company’s achievements, avoiding conflicts of interest, and also applying their knowledge and experience in helping their business to grow.

The general changes though are not on a large scale but aim to work upon the already built foundation provided by the DIFC. The amendments are expected to be received well, especially because it would not require too much effort from current companies and would ensure a more regulated and controlled environment in the free zone.

In case you need to know more about new company regulations, any information about how to set up a company in the free zones, or professional assistance for company formation in Dubai, do get in touch with us and we would be happy to help.

Newsletter, U.A.E

Three Major Developments Awaited in the Middle East in this New Year

January 17, 2019

Compulsory health insurance, some new life rules and enforcement of new regulations will be the top agenda.

Yes, this New Year is going to be a buzzing one for the insurance market in the Middle East and there are three major developments that we can forecast.

The first one is that an obligatory health insurance will continue to be rolled out in the GCC region. Recently, a new law has been announced in Bahrain and Oman which will be implemented in 2019, according to which all the employers need to necessarily offer health insurance to their staff members. However, with compulsory health insurance being a major factor of growth and upsurge in markets like the Kingdom of Saudi Arabia, Abu Dhabi, and Dubai, many others are surely going to follow suit.

Secondly, the UAE is soon going to put into practice the much-awaited Life Insurance Regulations. This step was announced back in 2016 end, but the Insurance Authority needs to still publish and announce the final draft of these regulations before its implementation. These regulations will surely have a very positive effect on the industry. It is also predicted that they will put a cap on the total fee and commission that is to be paid by policyholders, limit the usage of indemnity commission, and execute some obligatory disclosures and Pro-forma product illustrations. In all probability, the regulations would also help in short to a medium-level reduction in the total number of life insurance intermediaries and will further drive more consolidation.

Thirdly, all the regulators in the market will get tougher. In 2018, there were a lot of proactive steps taken by insurance sector regulators, be it in terms of the issuing of new regulations or better level of enforcement. Many official bodies in the KSA and UAE have suspended insurers and other intermediaries from doing business which is pending the investigation process and remediation of several regulatory breaches. It seems that these authorities and regional regulators would continue the same thing in this year too, as the regulators want to push further compliance and augment consumer protection.

Newsletter, U.A.E

UAE is Now Implementing New Laws Like 100% Ownership and 10-year Residency Visa for Expats

January 14, 2019

Some new regulations are anticipated to pull in foreign investors and also retain the expats in the Gulf country.

The cabinet of the UAE has started implementing laws like 100 percent foreign ownership and 10-year visas for the expats, entrepreneurs, and investors.

Though the full ownership of companies set up in the Gulf country is limited to only the free zones as of now, this new law is anticipated to bring in new foreign investors who want to establish or take over local companies in the UAE.

This year, new long-term visas will be introduced, which will be granted for up to 10 years to entrepreneurs, investors, and specialists working specifically in fields of medicine, science or research.

In addition, exceptional students would be eligible for getting a long-term visa under the new amendments, so as to motivate them to reside in the UAE after completing their education. The students scoring an average of a minimum of 95 percent grades in school and a grade point average of minimum 3.75 on graduation from the UAE universities and abroad would qualify for getting a five-year visa for themselves and also their families.

All the people looking to invest in the UAE, would be eligible to get a five or 10-year residency visa dependant on how big is their investment. The investor’s spouse, family or children, one executive director and also one adviser would also get long-term visas.

Entrepreneurs and businesses who have had a former business worth at least $136,000 (AED500,000), or those who to get approval of an accredited business incubator in the UAE, would also be given a five-year residency visa. They can also upgrade to an investor visa soon depending on certain pre-set conditions.

The visa would also be offered to the entrepreneur’s spouse, family or children, firm’s or business partners and also to three executive directors.

All the professionals such as doctors, inventors, scientists, specialists in the field of culture and art and the people involved in research in science and knowledge would be given a 10-year visa. The researchers, doctors, and scientists are also permitted to include their spouses and children under their residency visa.

Expatriates who are 55 years of age or above are allowed to live in the UAE after their retirement once they obtain a five-year retirement visa meeting certain pre-set criteria, which includes the ownership of property for a minimum valuation of $545,000 (AED2 million). There are other conditions such as the ownership of a minimum valuation of $272,260 (AED1m) in savings or the person should be having an active income or earning of over $5,445 (AED20,000) every month.

Besides this, a new quota system will be announced in 2019, which guarantees 50 percent of seats reserved especially for women in the Federal National Council (FNC) taking effect during elections. This move means, if there are 40 members in the FNC, there will be 20 women appointments in that for sure.

So if you are looking for DMCC company formation or company setup in Dubai, do get in touch with our team of professionals who will assist you according to your specific needs.

Newsletter, U.A.E

Companies to get set for the upcoming audits in 2019

January 7, 2019

All the UAE businesses should be prepared for the upcoming tax audits by the Federal Tax Authority (FTA) conducted for checking their resources and how accurately they are keeping their records.

The FTA has started sending e-mails to organizations notifying them that they would be audited within five working days of when they get an e-mail, for the tax periods of January 1, 2018 till April 30, 2018 and May 1, 2018 till July 31, 2018.

Getting through VAT audits could be a challenge for companies who are not prepared and have not been maintaining their tax records in accordance with the FTA guidelines.

The companies have to show that every business expense they have made is legitimate and they must possess proper documents for it. In addition to expenses, every revenue should be properly accounted for and the due tax amount should be paid on time regularly.

The FTA has recently enhanced its attention on VAT compliance for companies and has also announced guidelines to some important issues to clear out the doubts. Some businesses have also requested for tax audits recently, that cover one to two tax periods.

Tourist VAT refund

The UAE has announced its tourist VAT refund scheme – first phase on November 18, which permits the visitors to the country to claim the VAT refund on whatever they buy from the three busiest airports, namely Dubai, Sharjah, and Abu Dhabi when they fly out of the country within a period of 90 days.

Phase two was announced on December 16, being rolled out from the following locations: three airports like Al Ain International Airport, Ras Al Khaimah International Airport, and Al Maktoum International Airport; two sea ports like Port Rashid in Dubai and the Zayed Port in Abu Dhabi; and also four land ports such as Hili Border Port and Al Madheef Border Crossing in Al Ain, Al Ghuwaifat Border Post in Abu Dhabi, and Dubai’s Hatta Border Exit.

The data showed the number of retail outlets that were linked to this refund scheme totaled to 6,903 with almost 3,800 digital transactions being processed every day by December 10.

The UAE is forecasting that revenues will go up to Dh20 billion through VAT in the year 2019. This way, the government will be able to diversity the revenues away from the petrodollars as the falling crude prices encouraged the UAE and some other oil-producing countries to find alternatives due to unstable prices.

But the UAE has now rolled back the announced VAT on investments done in the sector of precious metals like gold, platinum, and silver used in business as per globally-accepted standards having purity levels of 99 percent or more.

This regulation was imposed under the framework that was agreed upon by the GCC states and some verticals in major sectors like healthcare, transport and education got an exemption under the new tax system.

Newsletter, U.A.E

Long-term visa announced for expats in 2019

January 7, 2019

The New Year has begun with a lot of good news for UAE women and also for all expat investors, businessmen, executives and specialists in the field of science, medicine, or research. A new quota system promises to reserve 50 percent seats for women in the Federal National Council (FNC) this year during the FNC elections. This move will push UAE to the fourth position in the world as per the Inter-Parliamentary Union.

20 out of the 40 FNC members will mandatorily be women

In 2019, more women would be seen on top jobs in the judicial system, diplomatic services and other areas, thus improving gender equality in the workplace. UAE authorities have also taken initiatives to enhance women’s participation in advanced sciences and also give prenatal and postnatal healthcare to all women.

The government will also now permit foreigners to stay in the country even after they retire, from this year onwards. Expats of the age of 55 or above would be eligible to obtain a five-year retirement visa in case they meet the criteria: owning property worth at least Dh2 million, or having a saving of at least Dh1 million, or having an active income of over Dh20,000 per month.

100 percent foreign ownership

Dr. Mohammad Al Khazraji, who is a leading Emirati lawyer, pointed towards the recent Cabinet measures and said that this is a great news for someone who loves working and living in the UAE, but could have struggled to settle somewhere after retirement. This new year will see another announcement for 100 percent foreign ownership of UAE companies, thus making the nation a more attractive destination for investors who want to take over local companies or start their business in the UAE.

Getting new long-term visas

In 2019, businessmen, investors, entrepreneurs and specialists (in the area of medicine, science or research) would be allowed to reside in the country for up to 10 years only on one visa.

Students with outstanding performance and grades would be now eligible for getting a long-term visa; this move will encourage budding professionals to live and work in the UAE for a long term.

Visa upgradation

Those investing in the country can get a five or 10-year residency visa, which depends on the volume of their investment. The investor’s spouse, or family like children, and also one of the executive directors and one adviser would also be eligible to get long-term visa.

Businessmen who have done a project earlier worth at least Dh500,000, or those who obtained approval of a UAE’s accredited business incubator, would get a visa for five years, with an option of upgradation to an investor visa, in case the required conditions are fulfilled.

Outstanding students who have scored at least 95 percent in school and also a grade point average of a minimum of 3.75 while graduating from universities in the UAE and in other nations would be eligible to get a five-year visa.

If you need any assistance or are looking for Dubai residence visa services or PRO services in Dubai, get in touch with us and we would be happy to help.

India, Newsletter

India Overpowers China With $93.7 Billion Deals

January 2, 2019

India is seeing a great year in terms of corporate deal making as foreign investors are spending a lot more in India as compared to China. Company formation in India is on a rise because of active foreign investors participation in Indian companies.

India, one of the fastest growing economies of the world offers great opportunities to businesses thriving here due to its mass consumers. Moreover, other factors encouraging the number of deals taking place in India includes industry consolidation, better bankruptcy system and increasing participation of family businesses.

This year India has experienced the highest volume in terms of the mergers and acquisitions deals ever since the economy started in the year 1990. The mergers and acquisitions deals targeting Indian companies totaled $93.7 billion this year which is 52% higher as compared to the last year. Out of this number, overseas purchases in India amounted to $39.5 billion which is higher than that of China amounting to $32.8 billion. The major reason for India overtaking China is owing to the slow growth in China and their trade battle with the U.S.

Moreover, the government has taken active steps in easing the conduct of business in India. With fruitful steps like the implementation of the new bankruptcy code, relaxed foreign direct investment rules, implementation of new tax regime in the form of GST (Goods and Services Tax) and efforts to end tax terrorism, India is becoming a hot stop for investment among international firms and investors.

Further, India has jumped 23 positions in the World Bank’s ease-of-doing-business ranking this year and is now at the 77^th position. Now India ranks first in South Asia and third among BRICS nations for ease of doing business. The major reforms that led India to this position are improvement in trading across borders with reduction of time and cost to export and import goods, ease of starting a business in India, reduced cost and time in getting electricity connection, introduction of single online window for obtaining construction permits, ease of obtaining credit and paying taxes. All these factors contribute to making the environment far more favourable for deal activities.

Growth in India is now remarkably higher than that of China with a huge group of higher-spending consumers. As per the reports from the government, India’s Gross Domestic Product (GDP) will almost double to $5 trillion by the year 2030.

Indian market, S&P BSE Sensex index also shows signs of enthusiasm with 4.2% higher this year. This is another benchmark in the world in positive territory.

Some of the biggest deals of the year that took place in India include:

Walmart Inc. invested $16 billion in Flipkart Private Limited
Naspers led $1 billion fundraising for Swiggy
SoftBank led a $1 billion investment in OYO Hotels

With all these initiatives and factors combined together, India makes for a promising destination for investment and conducting business.

If you are looking for foreign company registration in India, get in touch with a professional company like IMC Group who can help you out with the smooth and hassle-free establishment in India.

Newsletter, U.A.E

UAE Latest Business News: Dubai free zones recorded 22 percent trade growth in the year 2018

December 31, 2018

Dubai free zones recorded an all-time high growth of total trade volumes by 22 percent year-on-year in the first nine months of 2018, as per the Dubai Free Zones Council. The authority which manages the emirate’s 24 free-trade sections including Dubai International Financial Centre (DIFC), Dubai Media City, Jebel Ali Port zone, and others said that the free zone trade was at the top with $107 billion or AED 394 billion, which made up 41 percent of Dubai’s total trade in this period. China stood first as Dubai’s most important and significant free-trade partner recording a total trade volume of $16bn or AED59bn in this time period, followed by Saudi Arabia recording $9.3 billion or AED34.2 billion and then with India at $9.2 billion or AED 34 billion.

Dubai Duty Free records $52m sales during discount days

Dubai Duty Free hosts an annual 72-hour sale, which also marked its 35th anniversary this year and raised an astounding AED191 million ($52.33million). The anniversary discount which was applicable from 18 to 20 December presented an extra 25 percent discounts on a huge range of products at the Dubai International and Al Maktoum International airports. An airport retailer shared that the sales figures on 18 December totaled to almost AED42.89 million and AED41.25 million on December 19. However, the final day sales shot up to a great new height to approximately AED106.80 million. The highest selling category was cosmetics with sales figures of about AED46 million, with a close second of AED35.48 million sales of watches and AED34.23 million of perfumes.

Tech firms stand as one of the most searched job postings on LinkedIn in the UAE

Technology-based job positions figure on top as one of the most popular job searches on LinkedIn in the UAE. There were about 10 jobs, which collectively got about 940,000 views in 2018. A business development manager position at Amazon was at the top, followed by a position of a lead railway engineer at ABB and the job of a front office assistant at the Marriot Hotels Dubai Marina complex. The 4^th position was taken by the receptionist and administrative post at Huawei, followed closely by an account job at White Aluminum Enterprises, a customer service officer at Majid Al Futtaim who is fluent with Arabic, a personal assistant position at Emaar, a role of a project manager at Temenos, business analyst position at Dubai Careers and lastly, an assistant brand manager role at Nestle were some of the most viewed job postings.

DEWA is going to partner with a Dubai startup on getting AI innovative solutions

The Dubai Electricity and Water Authority or DEWA have recently signed a memorandum of understanding (MoU) with a startup in Dubai named Whizkey Future labs to design innovative solutions with an aim to change the existing electricity and water utility business models. The partners are going to use Fourth Industrial Revolution technologies like artificial intelligence (AI), robotics, the blockchain, etc for improving efficiency, productivity, and quality of their service. The MoU was signed when DEWA was participating in the 5th Dubai Future Accelerators program, organized by the Dubai Future Foundation.

Newsletter, U.A.E

UAE Latest Business News: UAE brought in 40 percent of Foreign Direct Investment in the Arab region in 2017

December 31, 2018

The UAE succeeded in attracting almost 40 percent of FDI in the Arab region in the year 2017, as per a top official of the Ministry of Economy. Ahmed Al Saleh, who is the undersecretary for foreign affairs at the Ministry of Economy, said that the UAE has been leading the way when it comes to FDI inflows in this region. He further said that the UAE got 40 percent of FDI inflows into the Arab and Western Asian nations and approximately 23.3 percent of FDIs went to the Middle East and North Africa regions in the year 2017, totaling to $130 billion of cumulative FDI inflows, which was 8.7 percent more than 2016.

A whooping $330bn worth of cheques were processed in the UAE in 2018

In the 11 months of 2018, almost 22.5 million cheques which were worth AED1.2 trillion about $330 billion were handled by the UAE Clearing Cheque System, as per the data released by the Central Bank of the UAE (CBUAE). The cheques processed between January to November were almost 80 percent of the total cheque value processed in whole of 2017, which stood at AED1.5 trillion, as reported by the state news agency WAM. Seeing the monthly data, about 2.1 million cheques, which totaled to AED97.8 billion were processed during November as against AED118.2 billion handled in the same month last year.

Abu Dhabi offers a waiver on duties on industrial imports

The government recently announced that the industrial inputs that are imported into the emirate of Abu Dhabi will now be exempted from the customs duties as of January 15. The Abu Dhabi Department of Economic Development (ADDED) and the General Administration of Customs declared in a media briefing held in the capital about the tax waiver, which is a part of a stimulus package offered by ADDED to the industrial sector of Abu Dhabi. The list of exempted materials included the raw materials, equipment, machinery, and spare parts.

Dubai envisions expanding the Islamic economy to amount to 10% of GDP by 2021

The Dubai Islamic Economy Development Centre (DIEDC) has the vision to enhance the Islamic economy’s contribution to the city’s GDP to almost 10 percent (it was 8.3 percent in 2018) by implementing and using more new and modern technology by the year 2021. This decision comes as a part of a five-year strategy announced by DIEDC in 2017 with an aim to expand three major sectors of the Islamic economy, which includes Sharia-compliant products and services. The approach will be focusing on enhancing knowledge and skills, industry standards, usage of digital technologies especially in the sectors of Islamic finance, halal products, and also Islamic lifestyle like fashion, styling, and tourism.

1 billionth passenger welcomed on the Dubai International Airport

The billionth passenger recently flew from the Dubai International Airport, making it one of the world’s busiest airports. Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum said that they had reached a new milestone are definitely headed towards a brighter future. It was a nine-year-old boy flying in from Orlando, Florida, who was chosen as the honorary billionth passenger. As a part of the celebration, the child and his family were welcomed by the Dubai International’s chairman.

Newsletter, U.A.E

November: A month of Strong Improvement in Dubai’s Private Sector

December 26, 2018

According to the statistics from Emirates NBD (one of the largest banking groups in the Middle East), the private construction sector of Dubai saw phenomenal growth. The non-oil private sector reflected faster expansions in business activity, new employment generation, and new work.

As per the data from Emirates NBD’s Dubai Economy Tracker Index, the three main non-oil sectors that saw improvements in November in comparison to the previous months include travel and tourism, wholesale and retail and construction. Among the three, the construction sector showed the fastest growth. The report further suggests that the growth of the non-oil private sector accelerated at the sharpest rate since August. The reason for such growth is attributed to healthy market conditions and successful promotional activity.

The rate of expansion in the above sectors was much greater than the overall trend for the year and above the historic average since January 2010.

The growth has further led to incremental job generation in the month of November. The employment data is now stable after a period of two months. The construction sector saw an increase in recording the personnel numbers. Furthermore, the new work data for November has shown a jump for the 33^rd month in a row.

After experiencing a two and a half year of low, the rate of growth is the strongest in five months. The growth is led by construction, wholesale and retail sectors.

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